Quebec challenges national Canadian securities regulator

OTTAWA, July 7 (Reuters) - The Quebec provincial government
will challenge in court the constitutionality of a federal plan
to establish a national securities regulator in Canada in
conjunction with those provinces willing to participate in the
plan.

Quebec said on Tuesday it would ask the Court of Appeal of
Quebec, in a reference, for a ruling on whether the plan is
constitutional.

In a statement, Quebec referred to a 2011 Supreme Court of
Canada ruling that found it was unconstitutional for the federal
government to impose a national regulator. In its ruling, the
Supreme Court said each province was responsible for day-to-day
regulation, while the federal government had powers over
national concerns only, such as responding to systemic risk.

In an effort to conform with that ruling, Ottawa and five
provinces are now pursuing a more cooperative approach that does
not impose a national regulator. Quebec still objects, however.

"Any reform scenario aimed at compromising Quebec's ability
to regulate this important sector of economic activity will
always be unacceptable," said Jean-Marc Fournier, Quebec's
minister for Canadian intergovernmental affairs.

Five of Canada's 10 provinces, including economically
powerful Ontario and British Columbia, plus the territory of
Yukon have signed on to the new Cooperative Capital Markets
Regulatory System.
(Reporting by Randall Palmer; Editing by Peter Galloway)